What’s new: The head of Shanghai government-backed energy equipment maker Shanghai Electric Group was placed under graft investigation, the city’s anti-corruption watchdog said Tuesday.
Zheng Jianhua, Communist Party chief and chairman of Shanghai Electric, is being probed on suspicion of serious violations of law and discipline, the graft buster said in a brief statement without giving details.
The background: Zheng, 61, is a veteran executive of Shanghai Electric. He became the company’s chairman and party head in 2017.
The Shanghai conglomerate was already rattled by a probe by the country’s top securities regulator on disclosure failures. That investigation may be linked to a missed-payment scandal revealed by Shanghai Electric in late May, sources told Caixin.
Shanghai Electric said that as much as 8.3 billion yuan ($1.3 billion) of net income attributable to shareholders was at risk because four clients of subsidiary Shanghai Electric Communication Technologies Co. Ltd. delayed repayments.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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